38 steps to becoming a trader
We found this post at Forexfactory.com from a member named Neers. We thought it was kind of fun to see where you are in the trading process. When you read this leave a comment as to where you are a
Enjoy the post!
They are as follows:
1. We accumulate information – buying books, going to seminars and researching.
2. We begin to trade with our ‘new’ knowledge.
3. We consistently ‘donate’ and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our ‘updated’ knowledge.
7. We get ‘beat up’ again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to ‘outside news’ and to other traders.
9. We go back into the market and continue to ‘donate’.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get ‘over-confident’ and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.
MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.
15. We get serious and start concentrating on learning a ‘real’ methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but over all we still hesitate when we execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don’t follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account
continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
Most traders will identify with this list and should be able to place themselves within these steps. Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4. and start ‘climbing’ the steps again. Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps. The focus
of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as
traders.
Which of the 38 steps are you on? Are you stuck or feeling frustrated on any particular phase? Let us know in a comment below and we’ll see if we can help give you some new ideas to try.
Tags: currency forex trader, currency trading, forex trader, success, successful trading, traders
Comments
9 Responses to “38 steps to becoming a trader”
Leave a Reply
Social Links
I like how you break the process down into 38 steps. Many times people are tempted to only designate 5 or so steps and it just becomes overwhelming when you realize that each steps takes so much time. Doing it this way really let’s one take each step incrementally.
really enjoy your post & blog. very useful, pack of info
Excellent! I currently at step 14 after 8 weeks into the game. Well, step 15 beckons since I’m determined not to give up. However, having seen these steps, I’ll work at leap-frogging some of them so as not to make some mistakes which are now obvious. I wonder how I’ll feel when I get to Step 38.
Love this post also. This site has been a huge help. Actually Its been everything. I’ve looked at other sites but this is the best yet. I’ve donated alot of money. I’m at a point where I actually doubled my account in the past 2 days. Following the jump start startegy. It takes everything I have not to break the rules. I found that if I break the rules and go with my gut. I get maybe 2 out of 10 trades. The past 15 out of 15 trades have all been winners! It was really hard to not get into trades on my instincts but I managed to talk myself out of it. Something else I’ve noticed from studying my trades is that by using the jump start method I almost always have a loseing trade if its not traded within the first few minutes from opening. Once it goes beyond 10 minutes I lose more and more money. I’m going to keep following my rules and studying my mistakes and successes. reading everything I can here and hopefully get Launch Pad soon! I really appreciate this site! Since things changed I cant figure out how to read all the post. How do you get to the post?
Love this post..i am currently at step 37 and believe me it’s has been a long but intresting ride.You have to be very aggressive with a strong mind set to suceed and you will make it.
This post is realistic. And is good to know that it is not only me going through stuff in order to be a successful trader. I am now where I disciple myself, keeping to rules at all time. I am making more more wins than never before, thanks for the Jump starts strategy.
I’m 30 and still working on it. Great post.
This is a great and interactive means of whiping one to the right lane! the best lane.
Good poetic effort from Neers
The challenges facing currency trading are being answered by only one software in this planet. The Ivy-Bot. The Ivy-Bot trading Robot is built to make money no matter whatever way the market turns. While many of the other systems were blowing out accounts, the Ivy-Bot team was actively adjusting the system to the most current market conditions. IvyBot is not just the only robot that gives you unlimited updates and a separate robot for each currency pair, IvyBot is hands down the most profitable Forex trading robot ever created! IvyBot has been back tested, optimized, and forward tested to do one thing, MAKE MONEY!